By Topic

How do Latecomer Firms Capture Value From Disruptive Technologies? A Secondary Business-Model Innovation Perspective

Sign In

Cookies must be enabled to login.After enabling cookies , please use refresh or reload or ctrl+f5 on the browser for the login options.

Formats Non-Member Member
$33 $13
Learn how you can qualify for the best price for this item!
Become an IEEE Member or Subscribe to
IEEE Xplore for exclusive pricing!
close button

puzzle piece

IEEE membership options for an individual and IEEE Xplore subscriptions for an organization offer the most affordable access to essential journal articles, conference papers, standards, eBooks, and eLearning courses.

Learn more about:

IEEE membership

IEEE Xplore subscriptions

3 Author(s)
Xiaobo Wu ; School of Management and National Institute for Innovation Management, Zhejiang University, Hangzhou, China ; Rufei Ma ; Yongjiang Shi

To fill the research gap between extant theory of disruptive technology and latecomer firms' business-model innovation practices in emerging economies, we explore the new latecomer advantage implied in the phenomena of overshooting and nonconsuming. Based on inductive theory building with a comparative case study, we find that latecomer firms, though disadvantaged in technological capabilities and market resources, can successfully introduce disruptive technologies from advanced economies into emerging economies through secondary business-model innovations. They provide cheaper, simpler, but good enough products or services that ordinary citizens in emerging economies can easily afford and access. How do latecomer firms capture value from disruptive technologies within the emerging economies context? While articulating an appropriate value proposition that is attractive for local customers is of great importance for those latecomer firms, they should also fully utilize strategic partners' complementary assets to build a unique value network embedded within local infrastructure. Thus, those latecomer firms tactfully bypass the substantial first-mover advantages and global advantages of multinational incumbents, and leverage their latecomer advantages such as low price and local savvy. Thus, latecomer firms should not ignore those disruptive growth opportunities within the large population of mass customers and nonconsumers in emerging economies.

Published in:

IEEE Transactions on Engineering Management  (Volume:57 ,  Issue: 1 )